Capital Raise to Support Drilling and Acquisitions
Sintana Energy (USOTC:SEUSF) (TSX-V:SEI) has conditionally raised US$11.5 million to finance an active exploration programme, including participation in the Chevron-operated Nabba-1 well located within Namibia’s PEL 90 licence area.
The financing was completed at 22.5 pence per new common share on AIM and C$0.41 per share on the TSX Venture Exchange.
As part of the transaction, the company plans to issue approximately 38.0 million new shares.
The AIM fundraising price represented a 13.5% discount to Sintana’s closing mid-market price of 26 pence on May 14.
Placing and Subscription Details
The financing includes a US$10.8 million placing involving roughly 35.6 million shares, alongside a US$0.7 million subscription covering approximately 2.37 million shares purchased by directors and qualified investors from Canada and Australia.
Chief executive Robert Bose and president Eytan Uliel each subscribed for 826,105 shares, investing US$250,000 individually.
Management Highlights Funding Flexibility
Bose said the oversubscribed financing, combined with the company’s existing cash resources and proceeds received from the Exxon settlement in Colombia, strengthens Sintana’s financial position ahead of upcoming exploration and acquisition activity.
The additional funding is expected to support work on the Nabba-1 well as well as the cash components tied to acquisitions involving interests in PEL 37 in Namibia’s Walvis Basin and KON-16 in Angola’s Kwanza Basin.